Importance of agriculture in indian economy. Role of agriculture in Indian economy 2019-01-08

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Importance of Agriculture in Indian Economy in 2017

importance of agriculture in indian economy

In India, agriculture is the main source of employment. India exported around 2 million metric tonnes of wheat and 2. Improving road and power generation infrastructure, knowledge gains and reforms has allowed India to increase farm productivity between 40% to 500% over 40 years. The Cambridge survey of world migration. The distribution of national income by industrial origin for the period 1950-51 to 1979-80 shows that the share of various agricultural commodities, animal husbandry and ancillary activities has always been more than 40 percent. In the local language, these crystals were called khanda खण्ड , which is the source of the word candy. Agricultural equipments such as— tractors, pump harvesters, fertilizers, pesticides were made available to farmers.

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Importance of Agriculture in Indian Economy in 2017

importance of agriculture in indian economy

Importance of Agriculture in India is realised by everyone when Mr. Handlooms, spinning oil milling, rice thrashing, etc. The shortage of agricultural goods has its impact upon on industrial production and a consequent increase in the general price level. But as the process of economic development accelerated, many more other occupations allied to farming came to be recognized as a part of agriculture. However, there are some differences in its presence based on the type of economy.

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Importance of Agriculture in Indian Economy

importance of agriculture in indian economy

In 1976-77, this sector alone contributed 42. Other historical evidence suggests rice and cotton were cultivated in the , and plowing patterns from the have been excavated at in. If this continues we will be shorting the food supplies, to eradicate this type of happenings first we have to strengthen the farmer by getting more revenue for the crops grown by him. Archived from on 10 June 2015. Importance in International Trade: It is the agricultural sector that feeds country's trade. Most of the production comprises food crops. However, primary goods face declining prices in international market and the prospects of increasing export earnings through them are limited.

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Role of Agriculture in Indian Economy (7 Roles)

importance of agriculture in indian economy

Also, the large number of workforce is untrained and not educated or skilled to be able to be absorbed in other sectors. In the earlier stages of development, an increase in the exports earning is more desirable because of the greater strains on the foreign exchange situation needed for the financing of imports of basic and essential capital goods. There are many reasons responsible for the low productivity of agriculture. To reduce this inequality of income, it is necessary to accord higher priority to agriculture. International Ranking At the global level, Indian agriculture has ranked in certain commodities. In this direction, the government set a target of 4% growth in agriculture in the 11th and the 12th plans, with a purpose to make growth inclusive.

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Discuss the importance of Agriculture in Indian Economy.

importance of agriculture in indian economy

This enforces international trade which is highly useful to the country. This can be measured and gauged by the following facts and figures: 1. Source of Raw Material: Agriculture has been the source of raw materials to the leading industries like cotton and jute textiles, sugar, tobacco, edible and non-edible oils etc. Indian farmers, thus produced about 71 kilograms of wheat and 80 kilograms of rice for every member of Indian population in 2011. Thus, the capacity to import capital goods and machinery for industrial development depends crucially on the export earning of the agriculture sector. Included in the table is the average productivity of India's farms for each produce. There are also special horticultural universities in India like Nauni University in Himachal Pradesh etc.

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Discuss the importance of Agriculture in Indian Economy.

importance of agriculture in indian economy

Market for industrial products: Increase in rural purchasing power is very necessary for industrial development as two- thirds of Indian population live in villages. This highlights the importance of agriculture in industrial development of the nation. The agricultural sector is a net earner of foreign exchange. In the initial stages of economic development, it is agriculture that constitutes a significant source of capital formation. The claimed Chinese and Indian yields have yet to be demonstrated on 7 hectare farm lots and that these are reproducible over two consecutive years on the same farm. India can save 800 million liters of petrol every year if the transport sector uses 10% ethanol mixed with petrol.

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Importance of Agriculture in the Indian Economy

importance of agriculture in indian economy

All these industries have extreme importance in the modern lives as well, and these cannot survive without an agricultural base. Saving potentials are large in agriculture sector which can be properly tapped for the development of the country. In short, agriculture occupies a central place in the Indian economy. Besides manufactured jute, cotton textiles and sugar also contribute another 20 per cent of the total exports of the country. Based on Democratic Notions: If the agricultural sector does not grow at a faster rate, it may result in the growing discontentment amongst the masses which is never healthy for the smooth running of democratic governments. Additionally, losses after harvest due to poor infrastructure and unorganized retail cause India to experience some of the highest food losses in the world. Without agriculture, one can never imagine having a filled stomach that will, in turn, give the energy to keep going all day along.

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Role of agriculture in Indian economy

importance of agriculture in indian economy

Similarly, a bad crop lead to a total depression in business of the country, which ultimately lead to a failure of economic planning. Generally, landless workers and marginal farmers are engaged in non-agricultural jobs like handicrafts, furniture, textiles, leather, metal work, processing industries, and in other service sectors. Despite these recent accomplishments, agriculture has the potential for major productivity and total output gains, because crop yields in India are still just 30% to 60% of the best sustainable crop yields achievable in the farms of developed and other developing countries. The government has not been able to implement schemes to raise investment in marketing infrastructure. Nearly two-thirds of its population depends directly on agriculture for its livelihood. The stability in prices of the food grains is sufficient by the production.

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Importance of agriculture and farming

importance of agriculture in indian economy

Therefore the development of these industries entirely is dependent on agriculture. It is the occupation of the farmer, and they are getting the better way of life for their livelihood. Several studies suggest India could eradicate its hunger and malnutrition and be a major source of food for the world by achieving productivity comparable with other countries. So a sense of security can be developed as the country can be rest assured that they can accomplish the needs of the citizens. Foreign exchange is yet another concept which comes into play here and has a huge effect on the overall growth of the country. The dualistic growth models of the 50s and 60s considered agriculture as a sector that supported industry, but that is not the case.

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